Responsibility of upi in upi fraud

UPI, which stands for Unified Payments Interface, is a digital payment system that allows individuals to transfer money instantly from one bank account to another in India. UPI has become increasingly popular due to its many benefits, including being free, fast, secure, and seamless.

Earlier, the laws in India did not include limiting liability of customers in case of financial fraud. However, an unprecedented hike in unauthorised transaction complaint and financial frauds have come to light in recent years. To address the same, RBI guidelines for unauthorised transactions keep revising from time to time. The latest RBI guidelines for UPI frauds in banks, unauthorised transaction on credit card and debit cards and other online modes require banks to refund the amount. For that purpose, unauthorised transaction complaint has to be reported without delay. While availing electronic payment services, banks have been instructed to register customer’s contact number (email ID as well) so that each and every transaction alert is communicated to that number. In that case, it is easy for customers to notice and report unauthorised transaction complaint and refunds can be initiated accordingly.

However, delay in reporting and also participation in the commitment of online financial frauds may affect the limiting liability of customers as per RBI. Once the matter is proven to fall under an unauthorised transaction complaint, banks have to process the refund within 10 days. The complaint also needs to be resolved within 90 days as per RBI guidelines for disputed transaction. If the officials comment that the bank won't refund unauthorised transaction since details were disclosed by the customer for which no cyber complaint is lodged, cyber crimes lawyer may help clear the further path.